U.S. securities class action settlements rose in 2021, according to a new report from a division of proxy advisory firm Institutional Shareholder Services (ISS).
The total value of U.S. securities class action settlements rose by 7.6% year over year to US$3.51 billion, ISS Securities Class Action Services LLC (ISS SCAS) said in its report. The volume of settlements was also up by 17.2% to 116, it noted.
“Investors last year saw significant monetary recoveries relative to 2020 and we expect that trend to continue in 2022,” said Ivar Eilertsen, head of ISS SCAS, in a release.
Last year’s settlement activity included 30 cases relating to corporate stock offerings, 18 involving company transactions, and 13 based on alleged accounting violations, the firm reported.
Another 10 cases involved alleged insider trading and eight of the settlements stemmed from financial restatements.
Settlement activity is likely to remain high, the firm said.